association of southeast asian nations
DESCRIPTION
AssociationTRANSCRIPT
2014Submitted TO: Sir Faiq MehmoodStudent Name & ID: Salma Akber (12133007)Mamoona Qadri (12133011) Nida Tanveer (13219002) Program: MBAAssociation of Southeast Asian Nations (ASEAN)
Association of Southeast Asian Nations (ASEAN)
Motto
One Vision, One Identity, One Community
Background and establishment
Cold War in the 1960s: political and security conflicts in Asia
Bangkok Declaration 1967
Five founding members
Formal objectives: economic and cultural cooperation
Loose agreement
Common policy towards Vietnam in the 1970s and 1980s
Aims & Purposes
To speed up Economic Growth, Social Progress, and Cultural development among its members
Protection of the peace and stability of the region
Provide opportunities for the members countries discuss differences peacefully.
Promote ASEAN identity.
Preserve Southeast Asia as a Nuclear Weapon-free zone and free of all other weapons of mass destruction.
Fundamental Principles
1. Mutual respect for the independence, equality, territorial integrity, and national identity of all nations
2. The right of every state to lead its national existence free from external interference and subversion
3. Non-interference in the internal affairs of one another
4. Settlement of differences or disputes by peaceful manners
5. Renunciation of the threat or use of force
6. Effective cooperation among themselves
ASEAN cooperation: economic and trade issues
1977 ASEAN Preferential Tariffs Arrangements (PTA): import tariff reductions
ASEAN Industrial Projects; ASEAN Industrial Complementation; ASEAN Industrial Joint Ventures
Slow progress in implementation
However, ASEAN became model for third world cooperation
In the 1990s, regional cooperation in trade began among ASEAN
ASEAN Free Trade Area (AFTA)
Response to regionalism and regionalization trends in Europe and North America
Common Effective Preferential Tariff (CEPT) scheme 1992
Trade preferences among the member countries
Gradual tariff reductions in intra-ASEAN trade (tariffs to 0-5 %)
Faster tariff reductions for 15 product groups
Other forms of ASEAN cooperation
In the 1990s, sub-regional cooperation in trade and investments
Growth Triangles: cross-border areas between three countries
E.g. Singapore-Johor-Riau (SIJORI)
In 2004, decision to establish a common market by 2020
ASEAN Community
Free flow of goods, services, investment, and a freer flow of capital
ASEAN organization
Loose institutional structure: consultation and cooperation
Central unit: ASEAN Secretariat (in Jakarta)Decisions made by consensus
Cooperation is slow and subject to fluctuations
Trade regimes and policy-making
No common trade policy, but different approaches based on industrial structures
From import substitution policy to export-oriented strategy
Main export sectors
Indonesia: labour-intensive manufacturing
Malaysia: palm oil, electronics
Philippines: agriculture, electr.
Singapore: trade, banking, finance
Thailand: labour-intensive manuf.
Brunei: oil and natural gas
External relations:Dialogue Partners System
Annual meetings with the dialogue partners within the DPS
Objectives: market access, science and technology, social and cultural development, etc.
Unique procedure in the developing country groupings
Committees with diplomatic missions around the world